What happens if you drop full coverage on a car?

I have a 2005 Nissan Rouge. I'm considering dropping full coverage on it. What would happen if I did?

“If you decide to remove full coverage from your car insurance policy, you won’t be covered if you’re at fault for damaging your vehicle or it’s marked a total loss.
This means if you get into an accident and you’re at fault, your collision insurance wouldn’t cover the damage. You’d be responsible for any repairs out of pocket. If your vehicle was marked a total loss and you were at fault, you wouldn’t receive a payout for the actual cash value.
Most experts recommend dropping full coverage once the cost of your insurance or maintaining full coverage exceeds the value of your vehicle. However, others state that you should drop full coverage if the annual costs of insurance are more than 10% of the value of the vehicle.
To determine the value of your vehicle, look at sites like Edmunds or Kelley Blue Book. Then, compare the value of your car versus the cost of your comprehensive insurance and collision insurance. If your policy premium costs more than the value of your vehicle or if you subscribe to the 10% rule stated above, it may be time to drop your coverage.
However, if you don’t think you can afford a new vehicle or it would cause financial hardship, you may want to maintain full coverage until you’ve saved more for an emergency fund. Take this time to also consider Jerry to help you compare quotes and find the best coverage for your car insurance needs.”
Emily Maracle
Answered on Sep 10, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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